Share buybacks21 Oct 2025 14:18
I have often raised my concerns about share buybacks on this and other boards. In particular, because in the case of JET2, the company buyback programme was responsible for around half of all buying over the last few months. Not surprisingly, the end of the buyback programme has coincided with a sharp SP fall. When the buyback programme began in April, the SP was about 1340p, having risen to around 1900p. It has now returned to earth and stands a little below that April figure, while the company has expended £250 million .........
I have said previously;y that one of the things that attracted me to Jet2 was its financial prudence, I fear that this is a major misstep.
Nevertheless, the business is robust.
I'm just back from a few weeks in the Canaries, where I attended to the overhaul of La Senora Casa's bottom (not my wife- the yacht of the same name.....)and flew Jet2 there and back. As usual, the planes were full, there were considerable numbers of staff at both ends herding the punters about and pressure selling everything from food to perfume to scratch cards. On the plus side, the operation is slick, buses of bodies are moved, managed and directed by lots of patient and cheerful staff, so the fundamental business is running well. Therefore,like others here, I plan to reinvest as the SP drifts downwards, though my original price to start reinvesting of 1300p will now probably be a good deal lower than that. I can foresee sub 1200 or sub 1100 around or just after budget time.
Below is a generic piece of text describing the background and history of shre buybacks, which I may well post elsewhere.
The U.S. first allowed share buybacks in a regulated manner with the introduction of SEC Rule 10b-18 in 1982, effective November 17, 1982. This rule provided a "safe harbour" for companies to repurchase their own shares without facing accusations of market manipulation, as long as they followed specific guidelines on the timing, price, and volume of repurchases. Before this, share buybacks were technically legal but carried significant legal risks due to unclear regulations, making them rare. The adoption of Rule 10b-18 under President Reagan's administration marked a clear shift, enabling companies to engage in buybacks more confidently, with the practice gaining popularity in the years following.
In 2024, share buybacks by U.S. public companies, primarily those in the S&P 500, totalled approximately $1.1–1.2 trillion. Total U.S. equity market buying volume (half of total traded value, as each trade involves a buy and sell) was roughly $21.3 trillion. This makes buybacks about 5–6% of total buying volume in the U.S. stock market. For 2025, projections suggest buybacks could rise to $1.2–1.3 trillion, potentially increasing to 6–7% of buying volume, assuming trading volumes grow to ~$22–24 trillion. These figures are estimates, as buybacks are concentrated among large firms (e.g., Apple, ~10% of S&P buybacks), and exact daily buy
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